MIA Investments sub-committee

The MIA has established an Investments sub-committee with the aim of promoting open and frank discussion in connection with investment related issues. The sub-committee seeks to draw upon the experience of its members to address various issues which affect the interests of members in general.

Soft commission

In a small number of cases, fund groups may have in place arrangements to pay commission to IFAs in respect of investments introduced into their funds, irrespective of whether this is directly or indirectly (via a Life Office portfolio bond). Commission may also have been paid to the IFA from the client's initial investment into the Portfolio Bond unless the IFA has given up an element of this commission to enhance the client's premium value.

Because the dealing instructions will have been placed via the life office by the client's appointed investment adviser, the client may not necessarily be aware of the commission payment from the fund group. In order to help ensure awareness, the MIA has agreed that where such soft commission is payable to an adviser as a result of assets introduced into portfolio bonds, each life office will seek confirmation that the client is aware of this payment.

This MIA policy came into effect on 1 July 2002.

UK Business - It is important to note that this confirmation will be required for all business, except business from the UK. There are specific disclosure rules contained within the regulations governing UK business and these already provide the necessary protection for clients. Regulated UK advisers already have a regulatory obligation to disclose to their clients all commission earned on the clients' investment. The format of such UK commission disclosure is defined within UK regulations.